Potential Deal-Killing Problems

RE: Know What Kills a House Deal

It is the wise seller, selling his/her own home, who prepares for problems before they happen. I also believe in this concept for my business! That is why I would like to share my problem checklist to alert you before signing anything. No sale is closed until it is closed, and the following items are potential roadblocks to closing. Ten years of experience and more than 500 successful closings have armed me with the tools to solve every problem mentioned here. However, it would be unfair for me to say that every problem can be solved. I have placed a delay of closing estimate next to each problem. The ones with asterisks (*) are potential dealkillers. Please call me for help if you are experiencing any of these challenges. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. LENDER PROBLEMS: Lender does not properly pre-qualify borrower Lender decides at the last minute that he does not like the borrower Lender decides at the last minute that he does not like the property Lender wants property repaired or cleaned prior to closing Lender raises rates, points, or costs Borrower does not qualify because of a late addition of information Lender requires a last-minute reappraisal Borrower does not like the fine print in the loan documents that are received three days before closing Lender loses file Lender asks buyer for information in bits and pieces, instead of all at one time DELAY: 2 weeks or * 2 weeks or * 2 weeks or * 1 to 3 weeks 2 weeks or * 2 weeks or * 2 weeks 3 days or * 1 to 3 weeks 1 to 4 weeks

Marc Cormier of Keller Williams Realty (703) 564-4026 (301) 660-6272

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1. 2. 3. 4. 5. 6. 7. 8. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 1. THE COOPERATIVE AGENT: Will not return phone calls. Transfers to another office. Did not pre-qualify the client for motivation. Goes on vacation and leaves no one to handle file. Does not understand or lacks experience in real estate. Poor people skills. Gets client upset over minor points. Does not communicate with their client. BUYER PROBLEMS: Does not tell the truth on loan application Does not tell the truth to the agent Submits incorrect tax returns to lender Lacks motivation Source of down payment changes Family members do not like purchase Is too picky about condition of property Finds another property that is a better deal Buyer is a nibbler (always negotiating) Hires an attorney Does not execute paperwork in a timely manner Does not deliver their cleared funds to the closing agent Has job change, illness, divorce, or other financial setback Comes up short on money Does not obtain insurance in a timely manner ESCROW PROBLEMS: Fails to notify agents of unsigned or unreturned documents so that the agents can cure the problems relating to same DELAY: 1 to 3 weeks 1 week 2 weeks or * 1 to 4 weeks 1 week or * 1 to 3 weeks 1 to 3 weeks 1 to 4 weeks DELAY: 1 week or * 1 week or * 4 weeks or * 1 week or * 1 week or * 1 week or * 1 week or * 1 week or * 1 week or * 2 weeks or * 3 weeks or * 1 to 2 weeks 3 weeks or * 1 week or * 1 to 4 weeks DELAY: 1 week or *

Marc Cormier of Keller Williams Realty (703) 564-4026 (301) 660-6272

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2. 3. 4. 5. 6. 7. 8. 9. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. ESCROW PROBLEMS: Fails to obtain information from beneficiaries, lien holders, title companies, insurance companies, or lenders in a timely manner Lets principals leave town without getting all necessary signatures. Incorrect interpretation or assumption of certain items then the confusion continues when the paperwork is turned over to other related parties Too busy to process in a timely fashion Loses paperwork Incorrectly prepares paperwork Does not pass on valuable information quickly enough Poor transaction coordination, slowly other processes PROBLEMS FROM YOUR SIDE: You lose motivation (i.e., job transfer did not go through, etc.) Illness, divorce, etc. The home has hidden defects that are subsequently discovered before closing Home inspection reveals average amount of small defects that you are unwilling to repair You hire an attorney You remove property from the premises that the buyer believed was included You are unable to clear up liens or other problems You have last-minute solvable liens You do not own 100% of the property as previously disclosed You thought your partners signatures were "no problem," but they were. You leave town without giving anyone power of attorney DELAY: 1 week to * 1 to 2 weeks 1 week to * 1 to 3 weeks 1 to 3 weeks 1 to 3 weeks 1 to 4 weeks 1 to 4 weeks DELAY: 1 week or * 1 week or * 1 week or * 1 week or * 1 week or * 1 to 3 weeks 1 week or * 1 to 3 weeks 1 week or * 1 week or * 1 to 4 weeks

Marc Cormier of Keller Williams Realty (703) 564-4026 (301) 660-6272

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12. 13. 1. 1. 2. 3. 4. 5. 1. 2. 3. 4. 5. 1. 2. 3. PROBLEMS FROM YOUR SIDE: The notary did not make a clear stamp when notarizing your signature You have to delay the projected move-out date ACTS OF GOD: Earthquake, tornado, fire, slides, etc. APPRAISAL PROBLEMS: The appraiser is not local and misunderstands the market No comparable sales are available Appraiser delays (too busy, etc.) Incorrect appraisal Appraisal too low INSPECTION COMPANY PROBLEMS: Too picky Scares buyer Infuriates seller Makes mistakes Delays report TITLE COMPANY PROBLEMS: Does not find liens or similar problems until last minute Poor service Loses paperwork DELAY: 3-7 days 1 day or * DELAY: 1 week or * DELAY: 1 to 3 weeks 1 week or * 1 to 3 weeks 1 to 3 weeks 1 week or * DELAY: 1 day or * 1 week or * 1 week or * 1 to 3 weeks 1 week or * DELAY: 1 week or * 1 to 3 weeks 1 to 2 weeks

I appreciate the time you have spent to understand the challenges that can occur between contract, acceptance, and close. I wanted you to understand these potential problems for the following reasons: 1. To help you prepare for the problems of a real estate sale.

Marc Cormier of Keller Williams Realty (703) 564-4026 (301) 660-6272

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2. 3. To facilitate the process, since a transaction cannot close until escrow has cleared up all of the previously mentioned problems. To let you know that I have a decade of experience in heading off these potential pitfalls. Feel free to call or email me if you need any help.

I would be happy to speak with you and answer any questions. I look forward to hearing from you. Sincerely,

Marc
Marc Cormier Keller Williams Realty (703) 564-4026 (301) 660-6272 Cormier64@gmail.com

Marc Cormier of Keller Williams Realty (703) 564-4026 (301) 660-6272